40 Reasons Why China’s One Belt One Road (OBOR) Initiative Ushers in The New Paradigm

The New Silk Road, or One Belt One Road (OBOR) project, includes countries situated on the original Silk Road through Central Asia, West Asia, the Middle East, and Europe

The Silk Road Economic Belt will be an overland network of road, rail and pipelines connecting China’s east coast with Europe via a new Eurasian land bridge. Five regional corridors will branch off the land bridge, with Mongolia and Russia to the North, South East Asia, India, Pakistan and Bangladesh to the South, and central Asia, West Asia and Europe to the West

Maritime Silk Road, aimed at investing and fostering collaboration in Southeast Asia, Oceania, and North Africa, through several contiguous bodies of water – the South China Sea, the South Pacific Ocean, and the wider Indian Ocean area

Xi Jinping said, “the economic belt along the Silk Road is home to 4 billion people and represents the biggest market in the world, with unparalleled potential”

Integration of these regions into an economic area through building infrastructure, increasing cultural exchanges, and broadening trade

Enhancing policy coordination is a requirement for implementing the OBOR Initiative via the promotion of intergovernmental cooperation, building a multi-level intergovernmental macro policy exchange and communication mechanism, expansion of shared interests, enhance mutual political trust, and reaching new cooperation consensus

Facilities connectivity is regarded as a priority for OBOR initiative, by respecting each other’s sovereignty and security concerns, development of the connectivity of infrastructure construction plans and technical standard systems, jointly push forward the construction of international trunk passageways

Investment and trade cooperation is a major task in building the OBOR, by improving investment and trade facilitation and removing investment and trade barriers within the region and in all related countries

Financial integration and cooperation needs to underpin the OBOR initiative via the implementation of currency stability, investment and a financing system

Strengthen bilateral cooperation and bilateral relations through multi-level and multi-channel communication and consultation. Develop the signing of cooperation Memorandums of Understanding (MOUs) and bilateral cooperation pilot projects. Establishment of bilateral joint working mechanisms, draw up implementation plans and roadmaps for advancing the OBOR initiative

China will fully leverage its various regions, adopting a proactive strategy of interaction and cooperation among the eastern, western and central regions, and their integration into the Chinese economy

President Xi Jinping and Premier Li Keqiang have visited over 20 countries, attended the Dialogue on Strengthening Connectivity Partnership and the sixth ministerial conference of the China-Arab States Cooperation Forum, and met with leaders of relevant countries to discuss bilateral relations and regional development issues

China is ready to conduct equal-footed consultation with all countries along the OBOR to maximise the opportunities provided by the Initiative

Designed to boost global trade and help countries coordinate their economic policies

It will incorporate up to 60 countries with a population of 4.5 billion people

1500 contracts worth over $40 billion were signed by Chinese companies in the first half of 2015

Already 900 projects planned at an estimated cost of $890 billion

President Xi Jinping has channelled nearly $1 trillion of government money into the project. He’s also encouraging state-owned enterprises and financial institutions to invest in infrastructure and construction abroad

China hopes to lift the value of cross-border trade to $2.5 trillion within a decade

China and the Association of Southeast Asian Nations (ASEAN) member states plan to push forward the OBOR initiative

Financing for Silk Road projects will come from Chinese state-owned banks and a series of government and multilateral funds, including a Silk Road Fund, the AIIB, and the New Development Bank

The Asian Infrastructure Investment Bank (AIIB) is a development bank dedicated to lending to infrastructure projects with an authorized capital of $100 billion. China is the largest stakeholder, holding 26% of voting rights

Silk Road Fund is financed predominantly with Chinese capital, with a focus on transport and other infrastructure, resources and connectivity projects across the B&R, with a focus on Asia. The initial US$40 billon seed capital is funded by the CDB, China Eximbank, the China Investment Corporation and China’s State Administration of Foreign Exchange (SAFE). The Karot Hydropower Station in Pakistan was the first investment project by the Silk Road Fund

The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS nations (Brazil, Russia, India, China and South Africa). They are looking to support public or private projects through loans, guarantees and equity participation. The initial authorized capital of the bank is $100 billion with the bank headquartered in Shanghai, China and its first regional office to be opened in Johannesburg, South Africa

China has pushed for the Shanghai Cooperation Organization (SCO) to establish a financial institution that would provide an additional funding stream for projects

The China Pakistan Economic Corridor (CPEC) initiatives will be financed through loans from Chinese state-owned banks such as the China Development Bank, The Industrial and Commercial Bank of China (ICBC) and the Export-Import Bank of China to enable Chinese companies to invest in projects as commercial ventures

Middle East and Africa via Dubai and Oman, bypassing the Strait of Malacca. Expansion into large–scale infrastructure projects, building on China’s previous focus on small scale renewables. This corridor is to some extent the test pilot for the Belt and Road Initiative and is expected to be a priority, given Pakistan’s lack of infrastructure development

Chinese contracts signed worth approximately US$45 billion covering energy, ICT and transport infrastructure. The US$1.95 billion 660MW Thar Coal project became the first integrated mining and power project in the corridor

Bangladesh – China – India – Myanmar Corridor

Bangladesh, India, Myanmar

Connect China with South Asia as part of China’s wider strategy for integration with western Asia, again reducing reliance on the Straits of Malacca

Chinese contracts covering telecoms, steel, solar energy and film signed with India. 2,800km Kolkata to Kunming road is at the heart of the corridor

Ports with Chinese Engagement

Africa (Planned or under construction)

Abidjan

Tema

Kribi

Libreville

Maputo

Beira

Bagamoyo

Mombasa

Lamu

Mogadishu

Dijbouti

Massawa

Africa (Existing)

Lome

Lagos

Sao Tome and Principe

Luanda

Walvis Bay

Dar es Salaam

Suez

Asia (Planned or under construction)

Kuantan

Sihanoukville

Asia (Existing)

Kuala Lumpur

Rajin

Chongjin

Europe (Existing)

Pireas

Ambarli

Anaklia

Others (Planned or under construction)

Male

Colombo

Hambantota

Gwadar

Chittagong

Others (Existing)

Karachi

Dhaka

Rail link from Lobito in Angola in West Africa to the port of Dar es Salaam in Tanzania in East Africa

Rail Link from Mombasa in Kenya to Kigali in Rwanda, Kasese and Pakwach in Uganda and Juba in South Sudan

It is estimated that 80% of 300 proposed new nuclear reactors, planned within the next 15 years, will be within the OBOR nations

SINOSURE, the Chinese state-owned export credit insurance provider, will provide commercial and political risk insurance cover to support Chinese companies, whilst also providing some assistance to host countries

Hong Kong chief executive CY Leung’s announced his intention of setting up a Maritime Authority aimed at strengthening Hong Kong’s maritime logistics in line with Beijing’s OBOR economic policies

New Silk Road Law Schools Alliance between 20 Chinese and foreign law schools of world famous comprehensive universities was launched in Xi’an, the capital of Shaanxi province. The alliance was formed with 10 law schools in China’s mainland and 2 in China’s Hong Kong and Taiwan, and 8 foreign law schools including the Law School of Singapore National University, the Law School of University of New South Wales, Australia, the Law School of University of Helsinki, Finland, the Law School of Delhi University, India, the Law School of People’s Friendship University, Russia, the Law School of FGV University, Brazil, the Law School of Seoul National University, South Korea and the Law School of National University, Kyrgyzstan

2 Comments

Just because the economic development of Europe and the United States occurred to a large extent within the framework of colonial and neocolonial domination of the “third world” does not mean there is no other path of progress. We in the west are about to have the privilege of receiving a lesson in humanity from our brothers and sisters in the east. I, for one, am happy to have a front row seat. Has anyone else gotten the notion to obtain a degree in law with a specialty in international contract law? I wouldn’t mind leaving the sidelines and joining the party!

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